Economy and Socal Life in Kenya - Assignment Example

Contents Contents 1 Introduction 2 Background Information: Kenya 2 People and Society 2 Education, Transport, and Health 4 Economy and Business 4 Conclusion 6 References 7 Introduction The thought of moving to a new country is always difficult because of the challenges that come with adopting in the new destination. The whole experience can be tiresome especially for the expatriates who have families. The paper presents detailed information about Kenya, which is a country for in the Eastern side of Africa. Background Information: Kenya Kenya gained independence from Britain in 1963. It has a democratic government, which is led by the President elected by the people after every five years (Gitari & Knighton, 2009). The history of Kenya shows that it is politically stable with serious election violence reported in 2007 and 1997. Kenya has made progress towards enhancing effectiveness in the political system with the implementation of a new constitution. Kenya has a population of 44 million with most people living in the rural areas. The capital city is Nairobi. It is also the hub for many government services. The other major towns and cities in Kenya are Nakuru, Mombasa, and Kisumu. Kenya is bordered by countries like Uganda, South Sudan, Tanzania, Ethiopia and Somalia (Hope, 2012). The two main languages in Kenya are Swahili and English. It provides information on the people, infrastructure, education, security and transport. People and Society Kenya is made of 42 tribes that are spread out in different parts of the country. The notable ethnic groups in the Kenya are Kikuyu, Luo, Luhya Kalenjin, Kamba, Kisii and Meru (CIA World Factbook, n.d.). The chart shows ethnic group distribution according to the data presented by the CIA World Factbook. The major religions in Kenya are Christianity and Islam. Majority of Kenyans fall between 25 and 54 years (CIA World Factbook, n.d.). The majority of Kenyans are young. The country struggles with high infant mortality rates, HIV/AIDS, famine, and floods. According to the CIA World Factbook, Kenya ranks 31 when compared to other nations in the world. It is clear from the graph that Kenya has many non-Africans who are citizens and foreigners. The country has expatriates who work with large business corporations or non-governmental organizations that deal with environmental issues, aid and relief and activities. Most of the expatriates live in highly secured estates. The estates have secured houses with compounds to limit movement in and out. The diverse nature of the Kenyan population makes it easy for foreigners to fit in. The culture can be termed as friendly with most people believing in the concept of African hospitality. Kenyans find it easy to help foreigners. However, one must practice caution because some conmen prey on unknowing foreigners by charging exorbitant prices for any service. Kenyans value greetings and mutual respect. The business world is characterized by traditional official suits for both men and women. The most important thing is to look decent and presentable. Formal settings are characterized by English language. Kenyan people are known for their hospitality and culture of gift giving on special occasions. Education, Transport, and Health The dominant education system in Kenya is the 8-4-4 system. The country offers a variety of possibilities for Education. The education is characterized by public schools that are for Kenyans only, and the private schools. Private schools are a bit expensive compared to the public schools. The country has some international private schools that offer IGSE and 844 systems. It also has a wide range of universities and colleges, which are spread out in the major towns. Some universities collaborate with foreign universities for exchange programs. Most of the expatriates in Kenya take their children to the private schools that guarantee security. The private schools can pick and drop the children at their homes. In fact, some private schools are majorly made of children whose parents are in Kenya for work only. Healthcare in Kenya is relatively expensive (Hope, 2012). The health sector has public and private hospitals. Some of the private hospitals offer high-quality medical services because of their highly trained staff. Private hospitals are expensive compared to the public hospitals that are characterized by many inefficiencies. Kenyatta National Hospital is the biggest government hospital. It has a private wing that is designated for patients who can pay for the privileges. Most roads in Kenya are poorly managed especially in rural areas. Caution is important when driving in Kenya roads especially the urban centres. Careless road users are common in most urban centres. In terms of infrastructure, Kenya has many malls, supermarkets, and arcades, which are found in major urban centres. Economy and Business Kenya has been classified by the World Bank as a developing economy. It has the biggest economy in East Africa, which is made of Burundi, Tanzania, Rwanda and Uganda. Kenya scores 55.6 in the economic freedom index (Heritage, n.d.). It has a GDP of $80.4 billion with a growth of 5.6% per annum (CIA World Factbook, n.d.). Agriculture, Tourism, and Industries are some of the major contributors to the Gross Domestic Product. The economy is struggling with high levels of unemployment, systemic corruption, inefficient government and poor infrastructure. However, the government has been successful in reducing its involvement in business, which makes it attractive to foreign corporations. The quality of services has improved as the country tries to woo foreign investors. Regulatory efficiency is still an issue because it would take 30 days and ten procedures to launch a firm (Heritage, n.d.). The public sector employs the majority of Kenyans, and the rest are in the informal economy. The government still involved in the regulation of prices for essential commodities in the form of subsidies, parastatals and agricultural marketing boards. The individual and corporate taxes stand at 30%. Value Added Tax (VAT) and interest tax are the other types of tax levied by the Kenyan government. Tax contributes approximately 20.1 percent of the GDP. The government spends 30.5% of the GDP and has a debt that is equivalent to 50% of the annual output (Heritage, n.d.). The growing financial sector has increased efficiency over the years. The country has embraced mobile money transfer services. Many microfinance institutions offer business loans and mortgages are available. It is possible to secure short-term loans using mobile money services. The country has also secured deals with the other East African states to facilitate ease in trade. Foreign investors still struggle with regulatory hurdles, which the government has promised to reduce. Image obtained from International Monetary Fund. Conclusion Kenya is a relatively free economy that is destined for great development. The government has been making efforts in reducing the regulatory hurdles to attract foreign investors. The increasing middle class has seen shopping centre and hang out joints increase in major urban centres (Masha, 2010). The country provides a conducive place for family life. However, caution is paramount to ensure security is not compromised. References CIA World Factbook, n.d. Kenya. [Online] Available at: http://www.ciaworldfactbook.us/africa/kenya.html [Accessed 30 April 2015]. Gitari, D. M. & Knighton, B., 2009. Religion and Politics in Kenya: Essays in Honor of a Meddlesome Priest. 1st ed. New York: Palgrave Macmillan. Heritage, n.d. Kenya. [Online] Available at: http://www.heritage.org/index/country/kenya [Accessed 30 April 2015]. Hope, K. R., 2012. The Political Economy of Development in Kenya. 1st ed. New York: Continuum International Pub. Masha, I., 2010. IMF Shocks Loan, Policy Changes Help Kenya's Recovery. [Online] Available at: http://www.imf.org/external/pubs/ft/survey/so/2010/CAR010810A.htm [Accessed 30 April 2015]. Read More